Australia: Effect of Global Financial Crisis on Older Workers

According to researchers from National Seniors Australia's Productive Ageing Centre, older single women in poor health and on lower incomes were the worst hit of Baby Boomers ( 5.5 million people born between 1946 and 1965, with many of the eldest already retired) by the global financial crisis. In the report--"Ageing Baby Boomers in Australia: Understanding the effects of the global financial crisis," around half those still working said they had been affected by the crisis and would delay their retirement, compared with 27% who rated themselves financially secure.

The survey reported that, despite the widespread financial effects of the recession, only 24% of retirees affected by the crisis expected to return to work or increase the paid work they were already doing. This proportion was even lower for those who were not financially affected by the GFC (16%).

Workers most affected by the crisis are set to stay in paid employment longer than anticipated and appear to be contributing more to their superannuation plans than pre-GFC. Interestingly, working baby boomers affected by the crisis are more likely to withdraw superannuation funds earlier at the expense of tax bonuses.

Among the lessons for the future suggested in the report, employers and governments are told that they "need to concentrate on making workplaces more welcoming to older workers," and that "one of the best ways to do this is to reduce ageism in hiring practices and work cultures."

Source: National Seniors Media Release (March 5, 2012)

Europe: White Paper on Pensions Includes Recommendations on Enabling People to Continue Working

A White Paper published by the European Commission on adequate, safe and sustainable pensions looks at how the EU and the member states can work to tackle the major challenges that confront our pension systems. Among other things, it puts forward a range of initiatives to help create the right conditions so that those who are able can continue working--leading to a better balance between time in work and time in retirement; to ensure people who move to another country can keep their pension rights; to help people save more and ensure that pension promises are kept and people get what they expect in retirement.

The White Paper includes proposals to:

• create better opportunities for older workers by calling on the social partners to adapt work place and labour market practices and by using the European Social Fund to bring older workers into work. Enabling people to work longer is a major focus of the European Year 2012 for Active Ageing and Solidarity between Generations;
• make supplementary pensions compatible with mobility, through legislation protecting the pension rights of mobile workers and by promoting the establishment of pension tracking services across the EU. This can provide citizens with information about pension entitlements and projections of their income after retirement.
• encourage Member States to promote longer working lives, by linking retirement age with life expectancy, restricting access to early retirement and closing the pension gap between men and women.
• continue to monitor the adequacy, sustainability and safety of pensions and support pension reforms in the Member States.

The EU has also published an FAQ on the White Paper. In prepared remarks, Commissioner László Andor, EU Commissioner for Employment, Social Affairs and Inclusion, said that while the White Paper aimed to improve the employability of older workers, raising the pensionable age alone is not enough, and that member states need take into account the fact that the ability to work--and to find employment--differs widely between individuals, and that life expectancy and health status at age 60 or age 65 tends to be lower for manual workers who started working at a young age. Source: Press Release (February 16, 2012)

Germany: Government Finds that Encouraging Older Workers to Stay Increases Business Productivity

Following its decision to raise the national retirement age to 67, the German government has released a report that having employees between the ages of 45 and 67 increases a business's productivity. In the first of semi-annual progress reports, the Ministry of Labour and Social Affairs has released "Fortschrittsreport „Altersgerechte Arbeitswelt“ Ausgabe 1: Entwicklung des Arbeitsmarkts für Ältere" in which it finds, among other things:

• employment rate of 60 to 64 year olds continues to rise, up to 40.8% in 2010 (up from 38.4% in 2009;
• the employment rate among 55-to 64-year-olds has increased since 2000 more in Germany than in most other EU countries, and among 60- to 64-year-olds, the increase in Germany was the strongest in the EU;
• if age-appropriate jobs are available, the productivity of employees between 45 and 50 years increases by as much as two percent.

According to Ursula von der Leyen (Federal Minister of Labor and Social Affairs):

Stimmt der Altersmix, dann steigt nach neuen wissenschaftlichen Studien quer über alle Branchen die Produktivität. Damit ist das Vorurteil widerlegt, dass Jüngere per se leistungsfähiger sind. Das Signal an die Unternehmen ist klar: Wer erfahrene Leistungsträger beschäftigt und Ältere einstellt, kann davon profitieren. Aber auch Flexibilität mit Blick auf die Lebensarbeitszeit wird für Betriebe und Mitarbeiterschaft immer wichtiger.

The Ministry also provides other web pages regarding raising the retirement age to 67.Source: Press Release (February 21, 2012)

Ireland and Northern Ireland: Gender Inequality on Access to Pensions for Older Women Workers

Centre for Ageing Research and Development in Ireland (CARDI) has published a report finding that less than one in three female pensioners in the Republic of Ireland receive the maximum contributory pension and women in Northern Ireland receive on average just 68% of male pension. According to "Older Women Workers’ Access to Pensions: Vulnerabilities, Perspectives and Strategies," although the pensions systems in both Ireland and the United Kingdom has begun to address barriers to equal access by gender, women continue to experience differential access to pensions, and particularly occupational and private pensions.

The most important factor in explaining the lower pensions of older women is that they are unlikely to have been employed steadily (or at all) throughout their adult lives. According to a CARDI research brief based on the report and other relevant data, "in RoI showed that in 1983 less than a quarter of women aged 50-54 were in paid work, though this was true of 80% of men of the same age. By 2002 the number of women aged 50-54 in the labour market had doubled to 50.6%." While European data show the increase in labor force participation by older women, "it shows the very low base in 1994, with less than one fifth of older women in employment in seven countries, including RoI."

Nata Duvvury, co-Director of the Global Women’s Studies Programme at NUI Galway, one of the lead investigators of the report commented:

Women are often the holders of low pay and part-time jobs which will dramatically affect their ability to build pensions. With the economic crisis, this particular group in society is being put under even more financial pressure and the long-term result looks set to be financial insecurity in older age.

Source: Centre for Ageing Research and Development in Ireland News Release (February 23, 2012)

United Kingdom: TUC Reports Surge in Unpaid Overtime by Older Workers

An analysis published by the British Trades Union Congress (TUC) finds that the proportion of employees in their late 50s and early 60s working unpaid overtime has increased sharply in the last decade--despite a fall in unpaid hours for the rest of the workforce. Published to coincide with "Work Your Proper Hours Day," the report states that a quarter of a million more workers in their late 50s and early 60s did unpaid overtime in 2011 than in 2001. The TUC attributes some of this to fears about a loss of income after retirement leading more people to work past their traditional retirement age.

While age may be a factor, workers who have been in the same post for at least ten years are twice as likely to work unpaid overtime (25%) as those who have been working for less than a year (12.5%).

Source: Trades Union Congress Media Release (February 24, 2012)

Eurobarometer Issued Measuring Active Aging, Attitudes to Older Workers

As part of the European Year of Active Aging, a Eurobarometer survey examined active ageing in the EU, including attitudes to the workplace, career end and pensions. According to the "Eurobarometer survey on active ageing," barriers to older workers functioning in the labor market included a lack of training, a lack of flexibility to reduce working hours, and negative perceptions on the part of employers. In addition, the overall view was that the retirement age should be equal for men and women, but that individuals should be allowed to work beyond retirement age if they wished.

Specifically, with respect to barriers, a lack of opportunities to allow older workers to reduce their working hours gradually was viewed as "very important" by 25% of respondents and "important" by 47%), the exclusion of older workers from training in the workplace was viewed as :very important" by 26% and "important" by 45%, and older workers not being viewed positively by employers was viewed as "very important" by 27% and "important" by 43%.

Looking at the advantages of older workers (those 55 and older), survey respondents perceived them to be more experienced (87% syaing that this was "much" or "somewhat" more likely) and more reliable than their younger counterparts (67% saying that this was "much" or "somewhat" more likely).

Source: Eurofound "New Eurobarometer survey examines active ageing" (February 23, 2012)

Canada: Older Workers Dominating Gains in Labor Market

According to "Older Workers Stampede Into The Labour Market," a special report published by TD Economics, older workers have dominated the gains in the Canadian labor market in recent years. Among other things, the report finds that Canadians aged 60 years and over have accounted for about one-third of all net job gains since the economic recovery began in July 2009, even though they only account for 8% of the total labor force. Some of these gains can be attributable to the fact that many older Canadians are delaying retirement and staying in the workforce longer.

[T]his is not simply a story of those in the 60-65 age range, but also of those older than 70. Employment for these individuals has surged by 55,000 positions since then (a 37% gain). Even more surprising is that almost 100,000 net jobs were added in the 60+ age group at the depth of the recession. By comparison, their younger counterparts (ages 59 and under) recorded well over 500,000 net losses over the same period.

TD Economics also suggests that some of the growing preference for older workers reflects their tendency to favor less rigid work arrangements, since it is estimated that upwards of one-third of all work arrangements are now "non-standard"--including part-time and temporary work, and self-employment.

Source: TD Economics Special Report (February 23, 2012)

United Kingdom: Survey Suggests Scottish Employers Not Ready for Older Workforce

Mining the details of its second survey from the "JLT 250 Club" on defined contribution (DC) pension schemes in the workplace, JLT Benefit Solutions finds that Scottish employers may not have adapted yet to a future without retirement. Even though the United Kingdom has abolished mandatory retirement, 50% of Scottish employers who participated in the survey do not yet know how they will adapt to an older employee workforce, and only one-third are reviewing or planning to review their reward strategy.

According to Malcolm Paul, Chairman of JLT Benefit Solutions in Scotland:

In particular, from the perspective of reward strategy, Scottish employers need to give consideration to the employee benefits that they will provide to their workers who continue in service after normal pension age. Organisations need a policy on the inevitable increase in demand for flexible retirement and the future role of pensions and other benefits in succession planning.

Source: JLT Benefit Solutions Limited News Release (February 22, 2012)

Australia: Targeting Older Workers to Help Aged Care Industry

According to an article in Aged Care INsite, internal research conducted by Bupa Care Services suggests that aged care providers should be targeting older workers in their communities in order to address their staff shortages. As reported by Darragh O Keeffe, "[w]hen Bupa analysed its internal data on staff turnover, length of service, sickness, workers compensation and take up of company reward programs, it was its older workers who stood out."

Staff members aged 60 and over comprise 10 per cent of Bupa’s workforce, but they represent just 3 per cent of the total claims for worker’s compensation. They take less sick leave than other age groups and they are over-represented when it comes to the company’s staff recognition program.

Bupa also found that We found the average length of service for a 60- to 69-year-olds was over nine years, compared to 3.7 years for a 40- to 49-year-olds.

Sources: "Grey army to the rescue" Aged Care INsite (February-March 2012); Bupa Aged Care Media Release (February 6, 2012)

Survey: Retirement May Be Becoming Thing of the Past

According to a survey conducted by Harris Interactive© on behalf of CareerBuilder and PrimeCB.com, 57% of workers age 60 and over said they would look for a new job after retiring from their current company. The survey, which included more than 800 U.S. workers age 60 and older and more than 3,000 hiring managers and human resources professionals, also found that 11% said they don’t think they’ll ever be able to retire.

From the employer side of the job market, CareerBuilder reports that 43% of employers plan to hire workers age 50 plus this year, while 41% said they hired workers age 50 plus in 2011. Overall, 75% of the employers surveyed would consider an application from an overqualified worker who is 50 plus, with 59% of them saying mature candidates bring a wealth of knowledge to an organization and can mentor others.

“Whether mature workers are motivated by financial concerns or simply enjoy going to work every day, we’re seeing more people move away from the traditional definition of retirement and seek ‘rehirement,’” said Rosemary Haefner, vice president of Human Resources at CareerBuilder. “At the same time, employers are seeing the value these mature workers can bring to an organization, from their intellectual capital to their mentoring and training capabilities. In a highly competitive job market, mature workers can use these skills to their advantage.”

Source: CareerBuilder Press Release (February 16, 2012)

New Zealand: Increased Labor Participation among 65 Plus Workers Displacing Younger Workers

In its 2012 annual report, the Salvation Army of New Zealand states, among other things, that older people staying in the workforce are displacing many teenagers from jobs. According to "The Growing Divide," the number of 15- to 19-year-olds in paid work dropped by 42,600 in the last five years, while the numbers still working beyond 65 jumped by 40,200.

In addition to just raw numbers, the labor force participation rate of people aged over 65 rose from from 14.1% in December 2006, to a record 19.5% in December 2011. At the same time, the participation rate of workers aged 15 to 19 has dropped from 58% to just under 48%.

Sources: Salvation ArmyNews Release (February 2012); Otago Daily Times "More older people staying in workforce" (February 19, 2012)

EBRI Report on Labor Participation Rates of Older Workers following Economic Downturn

The percentage of Americans 55 or older in the work force remains at its recent highs in 2011, according to a new report by EBRI. However,the article on "Labor-force Participation Rates of the Population Age 55 and Older, 2011: After the Economic Downturn" in the February 2012 issue of EBRI Notes, finds that this trend is almost exclusively due to the increase of women in the work force and that the male workforce participation rate is flat to declining.

EBRI concludes that the recent economic downturn did not alter the trend of older workers increasingly being in the labor force. Instead, it finds that this appears to remain the trend, as "more opportunities for older workers exist and there is a greater necessity for them to remain in the labor force to accumulate sufficient or adequate resources for retirement."

Source: EBRI Press Release (February 26, 2012)

United Kingdom: Average Retirement Age Rising

The United Kingdom Office for National Statistics has issued a new Pension Trends report showing that the average age at which people leave the labor market--a proxy for average age of retirement--rose from 63.8 years to 64.6 years for men and from 61.2 years to 62.3 years for women between 2004 and 2010.

The report also found that a larger proportion of men than of women take early retirement: 8.2% of women in the 55 to State Pension Age group were classified as retired in April-June 2011, compared with 20.4% of men aged 60 to State Pension Age. In addition, while the majority of people below State Pension Age who are in employment do full-time work, the transition to retirement involves a move to part-time employment: In April-June 2011, 7.3% of men of State Pension Age and over worked part time, while 4.6% worked full time; 8.9% of women of State Pension Age and over worked part time, while 3.6% worked full time.

Sources: Office for National Statistics Pension Trends: Chapter 4 "The labour market and retirement" (February 16, 2012); TAEN News Release (February 16, 2012)

Netherlands: Employer Support for Older Workers, but Not for Those Over 65

The Netherlands Institute for Social Research (SCP) has issued a report showing how personnel policy has changed in the Netherlands over the last ten years, describing, among other things, the trend in the inward and outward movements of staff in various sectors, mapping out developments in remuneration, training and employees' work-life balance, and devoting particular attention to the policy on older workers.

One focus of the study, "Demand for Labour [Vraag naar arbeid] 2011," was to look at the extent to which employers have taken up government recommendations and see if employers are taking a more positive view of older workers if the costs of employing this group are reduced. The results were mixed, with employers looking more favorably on workers over 60, but not workers over 65.

With respect to the first group, between 2001 and 2009, the number of employers who consider it good for their organization that employees should continue to work beyond the age of 60 rose from 41% to 55%, employees themselves have become more positive on working beyond the age of 60. "More than half the employers in virtually all sectors now regard it as desirable that employees should continue working beyond age 60. The only exception is the education sector, where only 43% of employers were in favour of this in 2009."

However, "support for continuing to work beyond the age of 65 years is low among both employers and employees; in 2009, only 15% of employers considered staff working beyond the current retirement age to be good for their organisation, while sup- port among employees was just 14%." However, the report took a positive spin even on this:

This suggests that there is still a long way to go in generating sufficient support to raise the retirement age. This does not appear to be an impossible task: after all, support for working beyond the age of 60 has also increased over the last decade. It may be that the norms as to when an employee is considered ‹too old› will to some extent shift of their own accord as the state retirement age rises and the labour force ages.

Sources: SCP Press Release (Feburary 14, 2012); DutchNews.nl "Employers do not want older workers" (February 14, 2012)

Hospitality Industry: Guide Issued for UK Employers To Retain and Recruit Older Workers

The Institute of Hospitality has issued an official knowledge pack--available to both non-members and members--designed for hospitality sector stakeholders to understand and explain the benefits of older (50+) worker recruitment and retention. Issued as part of the Institute's ongoing campaign to raise awareness of age diversity in the workplace, "The case for recruiting and retaining older workers: a business imperative for the Hospitality sector" has been produced by Capita Consulting on behalf of the Department for Work and Pensions, and presents the business rationale for continuing to promote and support ongoing activity on the older worker agenda.

Among other things, the guide:

• Highlights forthcoming demographic changes and the impact that these will have on both customers and employment patterns in the hospitality sector.
• Identifies barriers to older worker participation in the hospitality industry.
• Demonstrates how an older workforce can help address sector challenges (e.g. around skills shortages and poor customer service) via research, case studies and employer stories.
• Provides links to generic and sector specific good practice management guides/articles and information that can be adapted and disseminated to hospitality sector employers.

Source: Institute of Hospitality News Release (January 2012)

United Kingdom: Long-Term Unemployment Increasing among Over-50's

According to press reports, almost half of unemployed people aged 50 or over have been out of work for a year or more in the United Kingdom. Although women and young people appear to be bearing the brunt of job cuts over the past year, the trend in long-term unemployment among the older workers is a "disturbing" sign that older jobseekers are being consigned to the unemployment scrapheap, experts said.

Specfically, of the 426,000 unemployed older workers, 189,000 have been without jobs for a year or more, and 111,000 for at least two years.

Michelle Mitchell of Age UK said: 'This disturbing jump in the number of long-term unemployed older workers is a clear signal that the Government needs to take more action to help this age group, particularly at a time when it has raised the state pension age.'

Sources: Daily Telegraph "Older workers 'on jobs scrapheap' as crisis deepens" (February 15, 2012); AgeUK "Over-50s on 'unemployment scrapheap'" (February 16, 2012)

"Work Employment & Society" Publishes Series of Articles Exploring Workforce Aging

In its February 2012 issue of Work Employment & Society, the British Sociological Association has published three articles based on different research into workforce aging:

"Ageing, skills and participation in work-related training in Britain: assessing the position of older workers," by Jesus Canduela, Matthew Dutton, Steve Johnson, Colin Lindsay, Ronald W McQuaid, and Robert Raeside.

Policy makers have introduced a number of measures to encourage older workers to stay in the labour market, with improving access to training a particular priority. Policy action appeared justified by evidence that older workers are less likely to participate in training, and more likely to have never been offered training by employers – a key finding of Taylor and Urwin’s (2001) review of Labour Force Survey (LFS) data from 1997. This article models LFS data from 2007 to assess whether age remained a predictor of inequalities in training. It finds that men over 50 remained among those least likely to have been offered training by employers. There were other significant inequalities in participation, suggesting a polarization in access to jobs that offer opportunities for training and progression. The article concludes that policies promoting ‘active ageing’ need to challenge negative employer attitudes and acknowledge fundamental inequalities in access to skills.

"Gender, age and ageism: experiences of women managers in Finland and Scotland" by Marjut Jyrkinen and Linda McKie.

This article explores the intersectionality of gender and age in work and careers of women managers. Interviews were conducted with women senior managers in two EU countries, namely Finland and Scotland. These countries have demographic and economic similarities, but there are differences in welfare regimes, economies and employment policies. Using the approach of biographical matching the article compares how women managers in these countries encounter gendered ageism in the different stages of their careers. Data illustrate the myriad ways in which women experience ageism and lookism. The conclusion reflects upon these processes of gendering management which persist across these two labour markets

"Working past 65 in the UK and the USA: segregation into ‘Lopaq’ occupations?" by David Lain.

A prominent business case for employing older people in the 2000s suggests diverse employment opportunities existed for Britons over 65, despite their limited employment rights. However, it is hypothesized that employees over 65 were disproportionately segregated into less desired ‘Lopaq’ occupations: these were low paid, required few qualifications and were often part-time. The UK is contrasted with the USA, a country with long-established age discrimination legislation; the Labour Force Survey and Current Population Survey are analysed. A greater UK concentration in Lopaq occupations suggests employers, working in a context of limited employee rights, selectively retained and recruited people in their 60s to these jobs. An alternative explanation, that Lopaq employment levels reflected the characteristics of those choosing to work, is unsupported by logistic regression analysis. US evidence suggests that the 2011 default retirement age abolition will weaken UK Lopaq occupational segregation after 65 more than voluntaristic commitments to ‘age-diversity’.

Source: Work Employment & Society Table of Contents (February 2012)

Research: Increased in Earned Income Attributable to Increased Labor Participation by Older Workers

A report from the Division of Economic Research, Office of Research, Evaluation, and Statistics, Office of Retirement and Disability Policy, Social Security Administration, shows that higher labor force participation rates for people aged 62–79 are associated with a dramatic increase in the share of their total money income attributable to earnings. According to "The Increasing Labor Force Participation of Older Workers and its Effect on the Income of the Aged", by Michael V. Leonesio, Benjamin Bridges, Robert Gesumaria, and Linda Del Bene, for persons aged 65–69, the earnings share increased from 28% in 1980 to 42% percent in 2009.

They also found that while, two decades ago, Social Security benefits and earnings were roughly equal shares of total money income (about 30%), the earnings share is now more than 12 percentage points larger. The marked increase in the importance of earnings as an income source is also evident throughout the 62–79 age range among Social Security beneficiaries.

In reviewing the many factors that have likely contributed to the increase in late-life earnings, the authors note, among other things, legislative changes such as bans on age discrimination, the low private savings rates in the United States, increasing cost of health care, a healthier older population, and changes in social security rules for earned income.

Source: U.S. Social Security Administration Social Security Bulletin Vol. 72, No. 1 (February 2012)

Nordic Labour Journal Publishes Issue Focused on "Age is no Barrier"

The Nordic Labour Journal has published an in focus issue on "Age is No Barrier." Focused on demystifying old age and presenting points of view and debates emerging from changing demographics, articles in the Journal include:

• "Active old age and solidarity between generations"
• "Myths dominiate attitudes to older people in the workplace"
• "Flextime key to a longer working life"
• "Just how many older workers are there? And do they want to work more?"

Source: Nordic Labour Forum (Feburary 9, 2012)

Northern Europe: Forum Addresses Encouraging Older Workers To Stay in Workforce

At the Northern Europe Forum, on 8-9 February 2012, the leaders of the Nordic and Baltic countries and the United Kingdom met to discuss common social challenges, focusing on two important issues that are vital to achieving long-term sustainable growth: (1) How do we get more women into top positions and more women entrepreneurs? and (2) How do we get senior citizens to stay longer in the labour force? In addition, a conference on "Beyond 65: new life chances in the labour market" was organized by the Government Commission on the Future of Sweden to run alongside the Northern Future Forum.

On the latter issue, "[f]lexibility, a voluntary basis and respect for the skills and experience of senior people were among the most frequent words heard in the discussion on how the nine prime ministers could increase the proportion of senior people in the workforce. The delegates at the Northern Future Forum seemed to agree that the issue is complex and requires a change of attitude across the whole of society." A summary of the day's discussions as well as a webcast on the topic are available.

In preparation for the forum a paper--"Nine countries’ perspectives on women entrepreneurs and leaders and senior citizens in the labour force"--was published with a country-by-country description of the initiatives that have been taken to get older persons to stay in the work force. In addition, documents were prepared of statistics of the number of seniors in the workforce.

At the Commission on the Future session, the message from Swedish Prime Minister Fredrik Reinfeldt was that more people must be encouraged to work into older age and they must be prepared to retrain or change professions or careers during our working lives.

Sources: Nordic Labour Journal "Older people to be encouraged to work for longer" (February 9, 2012); Government of Sweden Northern Future Forum

Singapore: Reactions to Proposals Raising Age Before CPF Rates Are Cut

After Singapore Prime Minister Lee Hsien Loong said that employers' contribution rates to the Central Provident Fund (CPF) for older workers have to go up gradually, concerns have been expressed as to what the effect will be on older workers. Currently, CPF rates are cut when workers reach 50 years old, and cut further when they turn 65.

Unions have welcomed the move, recommending that the policy would be revised so that the drop from 16% to 12% takes place at age 55, 12% to 9% at age 60, etc., stressing that businesses can tackle the extra costs with some smart planning. However, others are worried that it will depress employment for older workers, noting that a larger proportion of older workers kept their jobs during the recession because their CPF was lower and so they were cheaper to retain.

Employers also said that raising the CPF contribution rates will disadvantage older workers, as "it does not help to price an older worker beyond what the employer can afford", reckoned Dr Randolph Tan, SIM University's business programme head.

Sources: Reuters "Singapore to raise pension contributions for older workers" (February 17, 2012); Channel News Asia "Employers' contributions to older workers' CPF to be raised: PM Lee" (Feburary 8, 2011); AsisOne "Employers concerned over higher CPF contribution rates" (February 10, 2012); The Business Times "Start cutting CPF rates only at age 55, say unions" (February 11, 2012)

Webcast: AARP Foundation Panels on Positioning Older Workers for Hourly Wage Jobs

On February 2, 2012 AARP Foundation hosted: "A Critical Conversation: Positioning Older Workers for Hourly Wage Jobs in Demand." The first video segment features research presentations on employer needs, including the following topics and presenters:

• Employer Research on Finding Qualified Candidates - Rebecca Perron, PhD, AARP Research and Strategic Analysis
  
• Will Workers Have the Education Needed for Future Jobs? - Hans Johnson, PhD, Public Policy Institute of California
  
• Innovative Workforce Strategies for Older Adults - Phyllis Snyder, CAEL (Council of Adult and Experiential Learning)

In the second video segment, Jim Torrens of Insight Center for Community Economic Development moderates a panel discussion between Employment Sector and Workforce Services Sector professionals, including:

• Steve Wing, Corporate Voices for Working Families
• Karen Key, National Human Service Assembly
• Jerold Ramos, AlliedBarton Security Services
• Joe Carbone, The WorkPlace, Bridgeport, CT
• Deb Briceland-Betts, AARP Foundation SCSEP
• Simon Lopez, National Council of La Raza, Workforce Services

Source: AARP Foundation YouTube (February 2, 2012)

Spain: Government Changes to Labor Policies Make it Cheaper to Discharge Older Workers

According to press reports, the Spanish government is taking steps towards ending a two-tier labor market that favors an older generation of workers with robust benefits who are very expensive to let go, but gives few rights to generally younger workers on temporary contracts. Specifically, the government plan would abolish contracts allowing severance packages of 45 days' pay for every year worked to employees deemed to have been unfairly dismissed, and instead would provide that employers firing staff will have to offer just 33 days' pay per year, or 20 days if the business is facing losses over a sustained period. In addition, it would cap severance pay at the equivalent of two years' wages, almost halving the limit from a previous 3 1/2 years.

Source: Reuters "Spain cuts firing costs in new labor reform" (February 10, 2012)

Another report says that the Spanish government is studying measures to allow older workers to remain employed and get a pension at the same time. According to the Minister for Employment and Social Security, Fatima Bañez, the plan is to reduce the number of early retirements to exceptional cases.

Source: EuroWeekly "Spain Plans To Allow Working While Receiving Pension" (February 14, 2012)

Japan: Increasingly Shrinking and Aging Population into 2060

According to new research from the National Institute of Population and Social Security Research, Japan's population will shrink by one-third by 2060, the number of people 65 or older will nearly double, and the Japanese workforce of people ages 15 to 65 will shrink to about half of the total population. The full report--"Japan's future estimated population (estimated January 2012)"--is only available in Japanese.

According to Reuters, "'The trend of the ageing society will continue and it is hard to expect the birth rate to rise significantly,' Chief Cabinet Secretary Osamu Fujimura told a news conference." The report is triggering new debates in Japan on both how to fund benefits for the aging population and how to boost fertility rates.

Prime Minister Yoshihiko Noda has vowed to double a 5 percent sales tax in two stages by October 2015 to help fund bulging social security costs, which are rising by 1 trillion yen ($13 billion) a year and aggravating a public debt already twice the size of Japan's $5 trillion (3.18 trillion pound) economy.

But the biggest opposition party, although agreeing on the need for a tax increase, is threatening to block legislation in parliament's upper house. The opposition argues that the ruling Democrats' plan to revamp public pensions would require a higher levy than planned.

Sources: Press TV"Japan faces shrinking population by one-third by 2060" (February 6, 2012); Seattle Times "Japan to see population shrink by one-third in next 5 decades" (February 1, 2012); Reuters "Japan population seen falling 30 percent by 2060"

Vision Benefits Underutilized by Older Workers

The annual Employee Perceptions of Vision Benefits survey conducted by Transitions Optical, Inc. finds that today’s aging U.S. workforce isn’t fully taking advantage of vision benefits provided by companies, and they are "missing out on a critical preventive care opportunity and leaving themselves at higher risk for age-related vision problems, eye diseases and chronic conditions that impact eye health and compromise productivity." Specifically, the survey found that baby boomers (ages 45-64) are only slightly more likely than younger employees to enroll in their vision benefit (79% vs 75%), and the 34% of baby boomers and 23% of those ages 65+ who enroll do not utilize their benefit to receive a comprehensive eye exam.

According to the survey, employees’ actual experiences with many vision-related issues do increase with age, but even older employees had limited awareness of these changes. Thus, for example, half of baby boomers were unaware that they may have more trouble seeing far away or seeing well in dim lighting as they grow older. Similarly, three in 10 were unaware of the increased risk for eye diseases such as cataract, glaucoma and macular degeneration.

Employers were also cited for not taking appropriate steps to make sure employees understand their vision benefit. While only 18% percent of employees reported that their employers do not communicate to them about their vision benefit, nearly 60% percent of employers provide only basic vision plan information during the open enrollment period and only 13% of employees said their employers also include information on the importance of eye health.

Source: Transitions Optical, Inc. Press Release (January 31, 2012)

Report: U.S. Skills Shortage coming from Aging Workforce and Lack of Corporate Development

A report issued by Taleo Corporation on the 2011 business climate and related talent management trends for 2012 finds that talent decisions are taking on increased importance as companies fail to effectively manage the flow of critical talent are risking their growth and in some cases even their survival. Among other things, "U.S. Talent Treands for 2012" finds that an aging population and a lack of investment in training and development will result in continuing skills shortages.

Taleo anticipates increased friction between businesses' global ambitions for expansion and varying quality and quantity of local labor. In the US, labor participation rates among younger workers continue to fall while rates among older workers rise. In the short-term, this skews the balance of the workforce toward more experienced, more expert workers. In the mid to long-term, this lack of investment and hiring of younger workers is going to exacerbate talent shortages related to boomer retirements. Smart companies are looking to rebalance their mix of new hires to focus more on emerging and potential talent.

Source: Taleo Corp. Press Release (January 30, 2012)

World Economic Forum on Global Aging, Releasing Social Capital

In advance of the winter meeting in Davos, the World Economic Forum released a book on global aging, addressing many issues, including how individuals find fulfillment, at what age they retire, and their quality of life once they do retire; how governments devise social contracts to provide financial security; how the older and younger generations interact as they divide up the economic pie; how businesses staff their jobs to compensate in many countries for shrinking workforces; and how health systems respond to the altered needs of those living longer.

With respect to the aging workforce itself, Global Population Ageing: Peril or Promise? has essays on:

• "Population Ageing: Macro Challenges and Policy Responses" by David E. Bloom, Axel Börsch-Supan, Patrick McGee and Atsushi Seike, who, among other things, suggest that "To adapt and possibly benefit from an increasingly aged world, businesses must shift organizational structures and practices in a number of areas.";
• "Social Capital, Lifelong Learning and Social Innovation" by Simon Biggs, Laura Carstensen and Paul Hogan, who conclude that "[i]f societies are to adapt, steps will need to be taken to release the social capital that is locked up in their older citizens. This potential would include the application of accrued social and emotional intelligence, an understanding of the ways things interact with each other and an ability to place single events in their wider perspective.";
• "Organizational Adaptation and Human Resource Needs for an Ageing Population" by Atsushi Seike, Simon Biggs and Leisa Sargent, who suggest that "Organizational adaptation will be a key element in achieving the human resource needs for a world with fewer younger workers and greater numbers of older workers. Where older people continue working, it can create a virtuous circle for public policy, whereby individuals continue to pay taxes while not drawing down on benefits systems."; and
• "Ageing Workforces and Competitiveness: A European Perspective" by Giles Archibald and Raymond Brood, who recommend focusing on flexible work, eldercare, flexible retirement solutions, training and working conditions.

Source: Fox News"Economies thrive on older staff, new social policy book claims" (January 31, 2012)

Research: Investigation of Effect of Providing Yoga and Other Vitality Intervention on Older Workers

Research published in the Journal of Epidemiology and Community Health has evaluated the effectiveness of a worksite vitality intervention on vigorous physical activity (VPA), fruit intake, aerobic capacity, mental health and need for recovery after work among older hospital workers (ie, 45 years and older). According to the Dutch researchers (Jorien E Strijk, Karin I Proper, Allard J van der Beek, and Willem van Mechelen) who carried out the research at two hospitals, implementation of worksite yoga and workout facilities and minimal fruit interventions should be considered by employers to promote transitions into healthier lifestyles and thereby health.

The research grew out of the premise that longer life expectancies and lower birth rates are leading to an aging society and subsequently a shrinkage of the workforce, so that aging workers are required in the near future. However, efforts just to raise retirement ages will not overcome the physical effects of aging. Thus, in order to prolong the working life of older workers and increase their employability, it is important to promote and maintain good health.

This study showed that intervention group workers significantly increased their weekly sports activities and fruit intake when compared to control group workers. Also, the intervention favourably affected the NFR after a day of work. No effects were observed for VPA, aerobic capacity and mental health.

The authors had earlier published an article on "A process evaluation of a worksite vitality intervention among ageing hospital workers" in the International Journal of Behavioral Nutrition and Physical Activity.

Source: Journal of Epidemiology and Community Health "A worksite vitality intervention to improve older workers' lifestyle and vitality-related outcomes: results of a randomised controlled trial." (January 20, 2012)

Australia: Survey Finds One in Three Older Workers Experience Discrimination

The Financial Services Council has released a report finding that 28% of older workers in Australia had experienced discrimination. The most frequently cite form of discrimination was being made redundant before others, with other forms including lack of training/development opportunities, verbal abuse and inflexibility towards health and physical needs. Discrimination was reported to be most acute among mid-managers earning the average Australian wage of $70,000 a year.

While attitudes among employers varied, the study found cost, particularly in the current economic
environment, and workplace culture were behind decisions to recruit younger staff. According to John Brogden, CEO of the Financial Services Council:

“At current trends, by 2050 there will only be 2.7 working Australians for every citizen over 65. Without action, this will have serious implications for the quality of life of every Australian,” Mr Brogden said.

“We need to end the concept of full time work followed by full time retirement. Australians remaining in the workforce for longer periods will stretch retirement incomes by supplementing superannuation through part-time work as well as reduce our nation’s skills shortage.["]

Source: Financial Services Council Media Release (January 30, 2012)

Canada: Economists Rekindle Debate about Raising Retirement Age to 70

Following up on recently published research, two economists from McMaster University economists are suggesting that demographic changes require raising the age of eligibility for the Canada Pension Plan to 70. According to press reports, future generations will "suffer the financial consequences" unless these changes are implemented, based on research by Byron G. Spencer and Frank T. Denton, published in 2011 ("Age of Pension Eligibility, Gains in Life Expectancy, and Social Policy").

As presented in the paper:

Canadians are living longer and retiring younger. When combined with the aging of the baby boom generation, that means that the “inactive” portion of the population is increasing and there are concerns about possibly large increases in the burden of support on those who are younger. We model the impact of continued future gains in life expectancy on the size of the population that receives public pension benefits. We pay special attention to possible increases in the age of eligibility and the pension contribution rate that would maintain the publicly financed component of the retirement income security system.

With no changes, by 2035, there will be only two people in the workforce for each person over the age of 65, instead of the four-to-one ratio currently existing, and that would require the contribution rate for CPP to double, from 6.4% to 12.3%.

Source: Toronto Star "Too selfish to retire? Economists urge pushing pension age to 70" (January 26, 2012); Hamilton Spectator "Raise pension age to 70: Mac study" (January 26, 2012)

Energy and Utility Industry: Preparing for Rapidly Changing Workforce Demographics

PricewaterhouseCoopers (PwC) has issued a report on how power and utility companies can best address industry changes within their organizations as they struggle with the awareness that an aging workforce is a significant risk to their operations. In "Change is happening: Is your workforce ready?," PwC looks into four areas in which successful, innovative and forward-thinking power and utility companies are effectively addressing change: developing and retaining leaders, effectively leveraging performance measurement and technology, realigning the organizational structure, and ensuring that the Human Resources (HR) team plays a significant role in overall business strategy.

Among other things, the report (based on a May 2011 survey) states leaders must have the skills to maanage:

• a workforce soon to be challenged with large-scale turnover;
• a workforce, trimmed through retirements and reductions, that is increasingly being asked to accomplish more with resources that are spread thin;
• the interaction between workers in a multigenerational labor force.

According to the survey, more than 60% of respondents rated the task of developing new leaders as difficult. Internal politics and lack of management support remain the greatest obstacles in developing effective new leaders, according to more than 50% of the survey respondents.

Source: PwC Publication Announcement (January 18, 2012)

Europe: Active Aging Year Gets off to Active Start

For Europe, 2012 is "European year of active ageing and solidarity between generations," and it has gotten off to an active start. The opening conference begins January 18, including a presentation by Danish EU Presidency, Eurofound's Donald Storrie, on "Senior citizens on the labour market--the need and potential of reforms."

The European Commission released a Eurobarometer showing that 71% of Europeans are aware that Europe's population is getting older, but only 42% are concerned about this development. Among other things, the Eurobaromter shows that who is considered "young" and "old" varies significantly across countries. Thus, for example, in Malta, Portugal and Sweden, people under 37 years are considered young, while in Cyprus and Greece people are considered young up to the age of 50.

In terms of having a job, only one in three Europeans agrees with the idea that the official retirement age will have to be increased by 2030, even though this is now a clear policy priority in many Member States. However, there is strong support (61%) for the idea that people should be allowed to continue working once they have reached the official retirement age. 53% reject the idea of a compulsory retirement age, but there are huge differences across Member States.

Earlier, on January 9, Eurofound research on "Impact of the recession on age management policies" was published. Authored by Chris van Stolk, the research explores the age management practices of companies in light of restructuring undergone during the recession, looking at policy in relation to the retention of older workers (aged 50 or more) in employment at national and establishment levels in nine European Union states. Among its conclusions:

Countries and establishments consider and discuss age management in different ways. All countries have policies that perform this function in some way, but the comprehensiveness of policies varies. The trajectory of reform differs between countries as does the urgency to target initiatives at older workers. In some cases and especially during the recession, older workers
were often not seen as priority groups. There was greater concern about the employability of younger workers. Given that the crisis affected younger workers disproportionately compared to other age groups, there were often good reasons to prioritise this group rather than older workers.

Source: Eurofound European Year 2012 Updates (January 13, 2012)

United Kingdom: Survey Finds Ageism Embedded in British Society

The UK's Department for Work and Pensions has published a report comparing attitudes between people in their 20s and people aged 70 and over, showing that age-related discrimination and stereotyping remain rooted in British society. According to "Attitudes to Age in Britain 2010-11," "A lack of mutual connection and respect across the age range is likely to foster stereotypes, misperceptions and discrimination. This suggests that different types of support are likely to be required to tackle the problem for different age groups."

Among other things, the report found:

• respondents thought that "youth" ends at 41 and "old age" begins at 59, but this varied by as much as twenty years in relation to the age of the respondent.
  
• while most respondents were accepting of a suitably qualified 30-year-old or 70-year-old boss, three times as many (15% and 5@, respectively) thought that having a 70-year-old boss would be 'unacceptable' compared with having a 30-year-old boss.
  
• respondents that were employed full-time or self-employed were far less likely to have experienced age discrimination than the unemployed working part-time groups.

Source: Department for Work and Pensions Press Release (January 12, 2012)

Despite U.S. Recession, More Workers over 55 Than Ever

An article in The Washington Post reviews Bureau of Labor Statistics data finding that although the recession has "thinned the ranks of other generations in the workforce, more people older than 55 are employed than ever before." Peter Whoriskey reports that while the "reasons for the surge of older workers are complex," experts point to "the growing fear among older Americans that they lack the means to support their retirement needs."

According to BLS data, those 55 and older in the workforce has risen by 3.1 million, or 12%, since the recession started. In addition, there are more people 75 years and older at work. This is not just absolute numbers: the percentage of those 55 and older at work has climbed from 38.9% to 40.3% during the recession.

Among other things noted are the shift from employers provided defined benefit plans to reliance on 401(k) plans, which increases the incentive to continue working in later years.

Source: The Washington Post "Amid downturn, more older Americans employed than ever before" (January 13, 2012)

Czech Republic: Study Shows Shrinking Opportunities for Older Workers

According to a published report, a study of the Czech Republic’s labor market by social scientists from Masaryk University in Brno (1) finds that unemployment rate among Czechs aged 50 to 64 is about 47%, and (2) warns that work opportunities for middle-aged and senior citizens have been shrinking at an alarming rate.

“Unlike in Finland, the Czech Republic has failed to reconcile conditions for retirement in the upcoming pension reform plans with an active employment policy that promotes opportunities for the aging population to work,” said Prof. Milada Rabušicová of the university’s Department of Educational Studies, the lead author of the report.

The situation can only get worse, according to the researchers, as worsening economic conditions and the growing size of the demographic group will make it ever more difficult for people middle-aged people to find work. With respect to stereotyping of older workers, the researchers say they have debunked the myth that older workers are slower to learn and adapt.

Source: CzechPosition.com "Nearly half of Czechs over 50 unemployed" (January 5, 2012)

United Kingdom: Survey Finds Pension Crisis Will Force Older Workers To Work or Earn into Their 70's

According to researchers for Friends Life Limited, a generation of "Wearies"--Working, Entrepreneurial and Active Retirees--"could be forces to continue working into their seventies and beyond due to hardships caused by the looming pensions crisis." Specifically, the study--"Pensions: Crisis and Reforms"--finds that 51% of Britons who are already retired said they would be prepared to do part-time work to boost their pensions, a figure which rises to 75% among those who are yet to retire.

Martin Palmer, head of corporate benefits marketing at Friends Life, said:

"We're expecting the traditional image of the pensioner with slippers and rocking chair to change completely.

"Many will not have saved adequately for a secure retirement and, with years of fiscal austerity taking their toll, by 2020 many people in their seventies simply will not be able to afford to give up working."

Source: Friends Life Ltd. News Release (January 9, 2012)

Study: Effect of Aging Workforce on Workers' Compensation Claims

The National Council on Compensation Insurance, Inc. (NCCI) has released a report examining the potential adverse impact on workers' compensation loss costs as baby boomers postpone retirement and accelerate the aging of the workforce. The paper--"
Workers Compensation and the Aging Workforce" authored by Tanya Restrepo and Harry Shuford--confirms that the share of older workers is increasing but finds, among other things:

• in terms of loss costs per worker, the major difference among age groups occurs between the 25 to 34 and the 35 to 44 age groups, while all groups of workers age 35 to 64 appear to have similar costs per worker;
• the long-standing tenet that younger workers have much higher injury rates is no longer true, so that differences in loss costs by age in recent years primarily reflect differences in severities since differences in frequency by age have virtually disappeared;
• differences in leading types of injuries are a major factor in differences in severity by age, with older workers tending to have more rotator cuff and knee injuries while younger workers have more back and ankle sprains;
• on the indemnity side, higher wages are a key factor leading to higher costs for older workers;and
• for medical, more treatments per claim are a material factor.

Source: National Council on Compensation Insurance, Inc. Research & Outlook (January 4, 2012)

Research: Investigators Report on Worker Disengagement before Retirement

A paper published by Dutch researchers following a panel study finds that, in line with the notion of the preretirement disengagement process, many older employees disengage more from work when getting closer to their planned retirement age. However, according to "Do Older Workers Develop a Short-Timer’s Attitude Prior to Retirement?" written by Marleen Damman, Kène Henkens, and Matthijs Kalmijn, career experiences of promotion and employer change slow down the disengagement process, while Declining health, in contrast, accelerates the process.

The aim of the study was to improve understanding of work disengagement in the pre-retirement period, by examining the impact of proximity to planned retirement (anticipated future) and work, educational, and health experiences (lived past) on pre-retirement work disengagement.

The transition from work to retirement is a complex long-term process. This study clearly shows that the preretirement work disengagement process already starts a couple of years before older workers retire and steadily increases when workers get closer to retirement. Also for workers who have passed their planned retirement age, relatively large increases in work disengagement were found.

Source: Social Science Research Network Abstract (December 21, 2011)

Australia: Study Identifies Barriers Preventing Older Workers from Remaining In or Re-entering in the Workforce

Australia's Minister for Employment Participation, Kate Ellis, has released a report identifying age discrimination, physical illness, injury and disability as key barriers preventing older Australians remaining in or re-entering the workforce. All together, 14 barriers are identified and discussed in "Ageing and the Barriers to Labour Force Participation in Australia," an interim report prepared by the Consultative Forum on Mature Age Participation:

discrimination in employment on the basis of age, care-giving responsibilities, flexibility of employment arrangements, issues around private recruitment firm practices, job search assistance, leisure time trade-off, mental health barriers, mismatch of skills and experience with industry demands, physical illness, injury and disability, re-entry issues barriers of the VLTU (Very Long-Term Unemployed), re-training and up-skilling barriers, superannuation, tax-transfer system, and workplace barriers.

According to one analysis, the report found found that a mature worker’s own health--not workplace barriers--was the biggest barrier preventing them from entering the workforce, staying employed or working beyond retirement age. Thus, while "physical illness, injury and disability" was given a 100% importance rating, workplace barriers--such as poor or difficult workplace conditions or environments and physically demanding occupations--was only given 16.7%.

However, the report also noted that "It is important to note that the barriers presented in this paper are not independent of each other. Rather, many are interrelated and policy responses need to recognise this complex reality. As such, responses to these barriers need to involve many stakeholders, including government, employer organisations, employers, trade unions as well as mature age people."

"The Australian Government recognises that older Australians, with their skills built over a lifetime, make a massive contribution to our economy and our community," Ms Ellis said.

"We want to clear the way for older Australians to be able to stay in the workforce if they want to and this means tackling issues such as age discrimination or looking at how workplaces, equipment and jobs can be modified to better suit older Australians.

Source: Minister for Employment Participation Media Release (December 13, 2011)

Australia: Report on Economic Potential Urges Government Action To Improve Labor Participation by Older Workers

The Advisory Panel on the Economic Potential of Senior Australians has submitted its third and final report to Australia's Deputy Prime Minister and Treasurer, making recommendations in areas it has found to be vital to enabling senior Australians to actively contribute to all aspects of society. While addressing issues across the aging spectrum, including an aging agenda, housing, lifelong learning, active aging, volunteering and philanthroppy, and age discrimination, the report--"Realising the economic potential of senior Australians: turning grey into gold"--makes a series of recommendations concerning participation in the labor force, including the following:

1. The federal government must engage peak employer and industry groups to assist individual employers to develop and implement older worker employment strategies, starting with a series of high profile seminars across the country.
2. All levels of government must embed age diversity within their workforces and model best practice on attracting, developing, and retaining older workers.
3. The federal government must work with industry to extend flexible work arrangements to people aged 55 and over by amending the law to include the right to request flexible work for this age group or through best practice industry standards.
4. The federal government must commission a review of the income support framework for people aged between 50 and age pension age (including income thresholds) and
   employment support programs for mature age workers, to ensure individuals have appropriate incentives and assistance to work to their fullest capacity.
5. The federal government must work with state and territory governments to amend workers’ compensation regimes to ensure older workers are not disadvantaged, convene a roundtable with the insurance industry to examine the availability and affordability of income protection insurance for workers over age 60, and to identify ways of encouraging the private insurance market to offer income protection insurance to workers regardless of their age.

According to Everald Compton, the Panel's Chair:

"Of particular importance will be the ability of seniors to stay in the workforce for a significant period after they reach the 'traditional age for retirement' and their ability to serve Australia as volunteers. We also want senior Australians to help turn Australia into a powerhouse of philanthropy".

"The work of this panel is only the start of action needed to embed a national ageing agenda in Australia", said Everald Compton. "Government of all levels need to continue working together to develop strategies out to 2050 to capitalise on the potential of senior Australians whose aspirations change with every generation".

Source: Advisory Panel on the Economic Potential of Senior Australians Media Release (December 12, 2011)

Generations of Talent Study: Effects of Country, Age, and Career Stage on Employes

The Sloan Center on Aging & Work at Boston College has published a study of employees' work experience, finding that those 40 years old and older are the most engaged and demonstrate the highest level of organizational commitment, and that those 50 years old and older are the most satisfied with their jobs. The "Generations of Talent Study" assessed the effects of country, age, and career stage among employees worldwide, based on work experiences from 11,298 individuals, working for seven multinational companies, at 24 worksites in 11 countries.

Among other things, the study found that employees working in young-developing countries (Brazil, China, India, Mexico, South Africa, Botswana) show higher levels of work engagement and organizational commitment than do those in the old-developed countries (Japan, the Netherlands, Spain, UK, U.S.). In contrast, job satisfaction levels are similar on average for employees working in the young-developing countries and in the old-developed countries. Dr. Marcie Pitt-Catsouphes, Director of the Sloan Center, noted that "[c]ontrary to popular opinion, older workers are the most engaged, and forward-thinking companies need to begin strategizing about how to capitalize on this asset."

In addition to an overall report on "Effects of “Old-Developed” versus “Young-Developing” Country Type and Age-Related Factors on Work Engagement, Job Satisfaction, & Organizational Commitment," the Sloan Center has published individual reports about the effects of country and age on employees for the following countries:

• Brazil
  
• China
  
• India
  
• Japan
  
• Mexico
  
• The Netherlands
  
• Spain
  
• United Kingdom
  
• United States

Source: Sloan Center on Aging & Work at Boston College News Release (December 1, 2011)

Canadian Chamber of Commerce Calls for Improving Incentives for Older Workers Staying on the Job

The Canadian Chamber of Commerce has issued a discussion paper, reinforcing the argument that retaining older workers in the workforce is part of the solution to avoid the skills crisis Canada is on the verge of experiencing, and calling for the removal of disincentives that discourage seniors from working. In "Incenting Seniors to Continue Working," the Chamber set the table for changes as follows:

Seniors represent a constituency that needs to be better integrated into the workforce. They possess the essential skills employers need. Many do want to continue working and view work as an important part of their life balance. Yet, in 2010, only a small percentage of individuals 55 years of age and over were in the labour force.

Accordingly, the paper pinpoints six key areas to be addressed in order to encourage the ongoing participation of seniors in the workforce:

1. pension reform;
2. tax reform;
3. flexibilty in the workplace;
4. innovative tools dedicated to the hiring of seniors, including online guides and websites;
5. lifelong learning and training; and
6. advancing a new business culture aimed first at retaining, rather than replacing, senior workers.

Source: Canadian Chamber of Commerce News Release (December 1, 2011)

Survey: Older Workers More Secure in Roles, Less Confident in Their Orgnaizations

In its 2011 Global Mindset Index, rogenSI reports that "workers are confused and uncertain about where their organisations are heading and rather than being innovative and forward thinking in their roles are instead playing it safe and holding on for all they’re worth as a renewed sense of uncertainty ripples across the globe." With respect to workers 50 and over, the report finds that the older a worker gets, the less confidence the worker has in his organization and where it’s going, but the more stable the worker feels in his role.

What is clear is that older workers are not lacking in confidence in their own abilities - they are, however, feeling unsure about their organisations’ prospects. It would seem as though their experience in the workforce has taught them to see the future a little more clearer than their younger colleagues — they know the warning signs of what’s to come because they have seen it all before.

rogenSI suggests that, left unattended, this can be a concern for organizations. In particular, this degree of malcontent can result in an inability to retain key staff. Thus, it is important to continue to provide feedback, support and guidance. Otherwise, costs associated with recruiting and training new staff will increase and with large numbers of new staff in critical roles, performance and outputs will undoubtedly be impacted.

Source: rogenSI "Don't Stop Believing: 2011 Global Mindset Index" (2011)

Aging and Demographics Identified as Part of Unrelated Trends Driving Talent Management

Research in thought leadership from Taleo Corporation finds that a number of otherwise unrleated changes around the world are likely to have a profound impact on the way companies of all sizes compete in an increasingly knowledge-based global economy. Specifically, "The Future of Talent Management: Underlying Drivers of Change" identifies integration of global economies, aging and demographics, a blurring of inside and outside talent, the Arab Spring uprisings, and the need to engage knowledge workers with mobile, social networks and other digital tools as key to defining how companies acquire and manage talent during the next five to 10 years.

With respect aging and demographics, the report states:

Baby Boomer retirement is top of mind in the United States, but the real demographic challenges are found in other developed countries, where population growth rates and aging populations are poised to stifle local economies. That means companies must move talent from areas of abundance to scarcity. And here, some new shifts are occurring. As once-new markets like China and India mature and labor there achieves parity with other developed economies, companies will look to other regions for cost-effective pools of talent, including Russia and Eastern Europe, Mexico, South America and "the rest of Asia."

Source: Taleo CorporationNews Release (November 8, 2011)

Australia: Clarius Group Reports Increase in Labor Participation by Older Workers

In its quarterly skills survey for the September 2011 quarter, the Clarius Group, while noting that the overall index fell in the quarter, also noted the aging demographic of the Australian workforce--the percentage of the labor force aged between 55-56 had increased to 13.8%, compared with 8.3% in 1998.

According to the report, "[b]alancing this exodus of older workers is the fact that an increasing number are staying because of higher life expectancy, improved health, and hopefully, because they enjoy working life." Furthermore, while many businesses are already targeting keeping the older workers, more initiatives are needed to sustain this development. The report also finds that "the older staff members want very much the same working structure as the youngest—-flexibility and challenges."

Clarius Group identifies three skills areas as being among the key skills the labor market will lose when this group of workers exit the labor force between 2017 and 2026: health, education, and engineering.

Source: Clarius Group Media Release (November 7, 2011)

Singapore: Age Friendly Workforce Asia Conference Opens with Study Showing Younger Workers Less Likely To Hire Older Workers

At the "Age Friendly Workforce Asia 2011" conference held in Singapore November 3 and 4, the Tripartite Alliance for Fair Employment Practices (TAFEP) announced the results of a study seeking to identify common factors that differentiate successful mature job-seekers from those who were unsuccessful. According to Ong Dai Lin, writing for TODAY, the study found that "[a] job-seeker above 40 stands a lower chance of snagging a job if he is interviewed by a panel of younger people. In contrast, his chances are substantially higher if the interviewers included people of similar age or those who are older."

Specifically, the likelihood of mature job-seekers getting and keeping the job jumped from 56.6% to 69.2% when they are faced with a mixed panel of young and old interviewers, instead of a panel comprising just younger people. In addition, the survey found that employability of mature workers increased when they are tech-savvy.

According to the conference sponsors, senior level decision makers came together to exchange ideas on business sustainability and lifelong employability: 400 CEOs and HR Directors "are revolutionising attitudes and harnessing new strategies towards an ageing workforce--the urgent reality of a greying phenomenon that is sweeping across Asia."

Also from TODAY:

Minister of State (Manpower) Tan Chuan-Jin felt that the study had "two key findings": One, diversifying the age composition of the recruitment selection panel increases a mature job seeker's chances. Two, the provision of flexible work arrangements helps widen the pool of mature job seekers.

Source: TODAY Online "Younger interviewers 'less likely to hire those above 40'" (November 4, 2011)

Australia: Minister Announces Removal of Age Limits on Superannuation

While announcing the introduction of superannuation guarantee rate legislation boosting the superannuation savings of Australians, the Assistant Treasurer and Minister for Financial Services and Superannuation, Bill Shorten, also announced the decision that there will be no age limit for superannuation guarantee contributions, effective July 1, 2013.

Scrapping the age limit had been a major goal of National Seniors.

Source: Minister for Financial Services and Superannuation Press Release (November 2, 2011)

Study: Employers with Older Employees, More Full-time Workers More Likely To Provide Pensions

A study issued by the Investment Company Institute reports that companies with an older, higher-earning workforce are more likely to offer retirement plans than those with younger, lower-income employees. According to "Who Gets Retirement Plans and Why, 2010," workers at small employers that sponsor retirement plans are as likely to participate as workers at large employers sponsoring retirement plans.

In addition, the study shows that 39% of workers aged 21 to 29 worked
for employers that sponsored retirement plans in 2010, compared to 57% of workers aged 55 to 64. Similarly, 23% of workers in the lowest quintile of annual earnings ($14,000 or less) worked for employers with retirement plans, compared with 74% of workers in the highest quintile ($60,000 or more. "Employees also were more likely to report that they worked for an employer that sponsored a plan if they were more fully engaged in the workforce."

Source: Investment Company Institute News Release (October 31, 2011)

United Kingdom: Survey Finds 6% of Workers Think They Can Never Afford To Retire

A survey conducted by Standard Life finds that over three quarters of a million 45-65 year olds in the United Kingdom say they don't think they will ever retire. While 6% of 45-65s who aren't retired don't think they will ever retire, 21% 1 of 45-65 year olds who have financial plans in place to provide for their long term future no longer feel their plans will support them due to the current economic climate.

On the other side of the equation, 16% of 45-65s who have financial plans in place to provide for their long term future feel confident, and a further 48% of 45-65s feel reasonably confident their financial plans will support their long-term future. Altogether, 72% of 45-65s who aren't retired plan to retire between the ages of 61 and 70 years old.

Source: Standard Life Press Release (October 28, 2011)

Canada: Study Finds that Delayed Retirement Has Become a Trend

A study by Statistics Canada finds that older workers have been increasingly delaying their retirement since the mid-1990s. This is consistent with the increase in the employment rate of older Canadians that began about the same time. Thus, a 50-year-old worker in 2008 could expect to stay in the labour force 3.5 years longer than in the mid-1990.

In an article--"Delayed retirement: A new trend?" by Yves Carrière and Diane Galarneau--published in Perspectives on Labour and Income (Vol. 23, no. 4), the authors conclude that:

Delayed retirement could alleviate some of the economic challenges of population aging. However, hours of work must be considered, since a drop in average weekly hours could partly offset the impact of an increased expected work life on annual hours and economic growth. In fact, the average work week for those 55 and over in 2010 was indeed 1 hour shorter than in 1997.

Source: Statistics Canada The Daily (October 26, 2011)

Netherlands: Government Introduces Bill To Facilitate Work after Age 65

The Dutch Social Affairs Minister, Henk Kamp, has introduced legislation designed to make it easier to work beyond the age of 65. Under the draft bill, employers will be allowed to extend temporary employment contracts for older workers beyond the current limit of two renewals.

Those over 65 will not be entitled to sick pay and employers will not have to take special steps to reintegrate them after sick leave. From 2013, employees will also be able to postpone their state pension for up to five years and receive a pension bonus of 6.5% for each year that they exceed the normal retirement age.

The bill is part of the agreements worked out by the Cabinet in June in the pension agreement made with employers and employees.

Source: Rijksoverheid (October 12, 2011)

Norway: Survey Finds Seniors Want To Keep Working, Employers Unprepared

Over half of respondents in the Norwegian Senior Policy Barometer would like to work after they have been entitled to a pension, but the majority of companies have no strategy for how to maintain and further develop the seniors. Specifically, the survey conducted for the Centre for Senior Policy reports that 66% of workers over 60 want to continue to work after reaching pension eligibility an increase from 54% in 2004.

According to Centre director Kari Østerud, a strategy to keep seniors in the workplace is not only about the senior's desire for more holidays and more flexible working hours. More importantly, it's about to be seen at work, having the opportunity to learn more, and the exciting challenges in the workplace.

The survey also found that the age before employees want to leave the workforce rose from 63.2 to 65 for 2011--the strongest increase in age ever measured. For those over 60, the age is even higher they want to come out of the workforce at 66.8, which is significantly higher than expected retirement age in Norway today.

Source: Centre for Senior Policy Press Release (October 19, 2011)

GAO Issues Repot of Recession on Employment Status of Older Americans

According to a report issued by the General Accountability Office (GAO) looking at unemployment and the recession, once older workers lose their jobs they are less likely to find other employment, household income has fallen 6% for adults aged 55 to 64, but increased by 5% for adults 65 and older, and older adults continued to spend more on medical care than those in younger age groups.

Specifically, in "Income Security: Older Adults and the 2007-2009 Recession," the GAO found that "the median duration of unemployment for older workers rose sharply from 2007 to 2010, more than tripling for workers 65 and older and increasing to 31 weeks from 11 weeks for workers aged 55 to 64. In addition, the proportion of older part-time workers who indicated they would prefer full-time work nearly doubled during this time."

It also found that median household net worth fell during the recession for older adults. Poverty rates increased for adults aged 55 to 64, but declined for those 65 and older, while low incomes were more prevalent in older age groups than in younger ones.

Source: General Accountability Office Report Abstract: GAO-12-76 (October 17, 2011)

Canada: Mining Industry Using Dual-Career Paths To Retain Knowledge Workers

According to a report issued by the Mining Industry Human Resources Council (MIHR), in partnership with the Canada Mining Innovation Council, Canadian mining companies are adopting dual-career development paths--that is, the creation of alternate advancement paths for technical and managerial employees--as a means to retain knowledge workers. In addition, "Making the Grade: Human Resources Challenges and Opportunities for Knowledge Workers in Canadian Mining" finds, among other things that a continued decline in fertility rates, coupled with an aging population, means that highly skilled immigrants will grow in importance to organizations looking to fill knowledge worker skills gaps.

Furthermore, the study finds that "employer outreach to younger audiences is seen as one key to future attraction of knowledge workers. The number of people connected through social media is increasing at an exponential rate, particularly among younger generations. Organizations are increasingly turning to social-media campaigns for recruitment, awareness and branding opportunities."

According to "Unearthing Possibilities: Human Resources Challenges and Opportunities in the Canadian Mineral Exploration Sector," a second report issued by the MIHR, the mining sector:

is not immune to the broad trend of an aging workforce—with 16 per cent of the workforce over age 55. Furthermore—and of particular importance—the sector has a shortage of workers in the middle parts of their career (aged 35 to 44), suggesting challenges with mid-career attrition.

Thus, among other things, it finds that programs and initiatives to engage and retain the aging workforce are also important for the future success of the exploration sector. .

Source: Mining Industry Human Resources Council News Release (October 14, 2011)

Case Study: Six Major US Employers and Age Diversity

The Sloan Center on Aging & Work at Boston College has released a report examining the evolution of age diversity strategies within six major U.S. employers finding, among other things, that while U.S. employers tend to have formal diversity programs at their workplace, age diversity isn't always a clearly defined element, nor is it effectively communicated. In "Age: A 21st Century Diversity Imperative," the report looks at Cornell University, Dell, GlaxoSmithKline, Marriott, MITRE and Wells Fargo, each of which shared a promising practice along with its business case, implementation steps, metrics of success and future outlook.

The report also found that the approach to age diversity is evolving within organizations: from a compliance-only focus, to an older worker and then multigenerational approach, to an integrated age management strategy. Even in organizations that have implemented age-related initiatives focused on younger or older workers, the internal strategic focus is on the four generations in the workplace--veterans (born before 1946), boomers, Gen Y, and the up and coming Gen 2020 (born after 2000--and enhancing intergenerational relationships.

The practices examined included:

• a program for retirees enabling
  project work, consulting, volunteerism and website resources.
• a toolkit to better equip managers with the resources needed to successfully lead multigenerational teams.
• employee resource groups for boomers and young professionals

Source: Sloan Center on Aging & Work at Boston College Publication Archive (September 2011)

Australia: Seniors Group Calls for Scrapping Age Limits on Employer Superannuation Contributions

At the Tax Forum in Canberra, National Seniors is calling on the government to scrap age limits on the superannuation guarantee at this week’s Tax Forum in Canberra. According to National Seniors chairman and economist Professor Judith Sloan, superannuation age limits are inconsistent with espoused labour market trends: "We’re getting mixed messages," she said. "On the issue of super guarantee age limits, it’s time for Government to put their money where their mouth is."

Their submission to the Tax Forum also calls for providing appropriate support for mature workers:

Creating a level playing field for mature age workers and indeed recognising the extensive skills and experience of many older Australians must remain an economic imperative. There are both economic and fiscal imperatives for improving the participation rate and employment of older people. Participation in the workforce is associated with positive life outcomes such as financial independence, a sense of identity and social opportunities, as well as contributing to healthy ageing.

The average duration of unemployment for a person aged 55 and over is much longer than that for younger people. As of July 2011, the average period of unemployment for those aged 55 and over was 63 weeks. This compares with only 33 weeks for those aged 15-54. That represents more than a year of lost productivity for the economy and a prolonged period of financial hardship for the individual, at a time of life when people are usually best placed to increase their retirement savings. This hardship is compounded by changes to indexation arrangements in recent years, which mean that a single person under 60 on Newstart Allowance receives only 65 per cent of the amount an age pensioner receives.

The Consultative Forum on Mature Age Participation is expected to put forward a range of proposals to redress barriers to employment in 2012. In the interim, National Seniors’ key priority is to increase the Newstart Allowance for the long-term unemployed to a level approaching the age pension.

Source: National Senioers Media Release (October 3, 2011)

Work-relevant Musculoskeletal Disorders among Older Workers

According to an article by Kathy Lewis, director of Working-Health Physiotherapy and Ergonomics, factors influencing work-relevant musculoskeletal disorders (WRMSDs) in the older workforce are numerous and complex, but an increasing understanding of this is emerging. After considering the positive and negative impacts of employing an older worker and highlighting how an organization can help support the aging population to help sustain a productive and healthy workforce with regards to neuromusculoskeletal health, she suggests a series of best practices for employers:

1. assess the determinants of work ability of the older worker;
2. target available resources to identified problem areas, aiming at an individual, group or organizational level and including such things as examination of job demands versus individual capabilities; examination of work-rest scheduling; shift-work guidance; examination of current reporting systems; and
3. consider policy implications with regards to the neuromusculoskeletal health of the older worker, such as age strategy; and
   the prevention of age discrimination in the workplace.

Source: Personnel Today"Work-relevant MSDs and the older workforce" (October 1, 2011)

New Hampshire: Report on Aging and Healthcare

A report issued by the New Hampshire Center for Public Policy Studies looks at how the state’s shift towards an increasingly older population from now until 2030 will influence critical policy debates, including health care. Among other things, according to "New Hampshire’s Silver Tsunami: Aging and the Health care system," the move towards an older population in New Hampshire will exacerbate existing problems in recruiting and retaining a health care workforce.

By 2030, nearly half a million residents will be over the age of 65, representing almost one-third of the population. While the report addresses a number of issues, it also confronts the aging workforce:

New Hampshire physicians are already significantly older than the nationwide physician population. And as the share of the population that is not working increases, it will raise concerns about who will take care of this aged population.

To this end, the report analyzes the dynamic of a shrinking labor pool following the retirement of the baby boomer generation, in particularly noting the growing discrepancy between the older population and the younger workers needed to care for it.

Source: New Hampshire Center for Public Policy Studies News Release (September 28, 2011)